April 06, 2005, 13:00
The large maize surplus and low market prices are forcing farmers to look for alternative outlets. This has prompted a group of farmers to form Ethanol Africa. The organisation aims setting up plants for the convergence of the surplus maize into ethanol, which can be blended into fuel.
The establishment of an ethanol industry depends on whether maize farmers can co-operate and acquiesce 3 million tons of maize as security for the financing of the first plants. Currently the maize surplus stands at 2 million tons, but it is expected to be between five and six tons after this year's harvest.
A large amount of South Africa's fuel consumption could be supplied through maize as soon as the five or six plants are up and running. "If we transfer 3 million tons of maize into ethanol, we will produce 1.26 billion litres of petrol ... 12% of the local consumption," Johan Hoffman of Ethanol Africa said.